Michigan Contractor License Search

Who Is a Contractor in Michigan?

Contractors are individuals and businesses that offer services in exchange for compensation. These services are usually based on oral or written agreements or contracts and typically include but are not limited to constructing, altering, repairing, maintaining, and improving real estate and property. The Department of Licensing and Regulatory Affairs (LARA) is responsible for licensing and regulating the activities of contractors in Michigan through its Bureau of Construction Codes. This agency currently issues two main types of licenses:

• Residential Builders / Maintenance & Alteration Contractors License: This license is required for any work worth $600 or more, cost of materials and labor inclusive, that involves constructing, repairing, altering, or improving residential structures or combination residential and commercial structures. However, LARA-licensed electricians, plumbers, and HVAC contractors are exempt from this licensing requirement. Residential Builders / Maintenance & Alteration Contractors Licenses typically indicate the scope of services the license holder is authorized to offer.
• Skilled Trades Licenses: These licenses are required for electricians, HVAC contractors, plumbers, elevator contractors, and other construction professionals offering services that require specialized training, knowledge, and competency.

Irrespective of the licenses they hold, Michigan contractors can be grouped into three broad categories:

• General Contractors: This category of contractors primarily oversees and supervises building, construction, and home improvement projects on behalf of the project owner; however, they may also perform actual construction-related work within the scope of their respective licenses. Some general contractors in Michigan specialize in residential, commercial, or industrial construction. They are usually the main point of contact between project owners and involved subcontractors, laborers, and materials suppliers, regardless of the project's nature or scope.
• Specialty Contractors: These contractors provide building, construction, and home improvement-related services that require special skills and training, like plumbing, electrical work, carpentry, HVAC work, masonry, flooring, painting, and roofing. Specialty contractors in Michigan typically require a residential builders/maintenance and alteration contractor license; however, electricians, plumbers, and HVAC contractors must obtain a skilled trades license to ply their trade.
• Subcontractors: This term is used to refer to specialty contractors who general contractors hire to perform specific tasks on a project. Subcontractors usually have no direct contact with project owners; they deal with and are supervised by the general contractor who hired them.

How to Search for a Contractor's License in Michigan

The Department of Licensing and Regulatory Affairs (LARA) licenses contractors in Michigan (more than 157,000 of these contractors currently operate across the state). You can determine whether this agency has appropriately licensed your intended contractors, meaning they are qualified to provide your required services, using the Uhire Professional License Search tool. LARA also offers a Search for a Licensee platform that you can use to check your contractor's license status.

Penalty for Hiring a Contractor Without a License in Michigan

Engaging the services of unlicensed contractors in Michigan can be considered aiding and abetting the unlicensed practice of an occupation and is subject to administrative fines issued by the Department of Licensing and Regulatory Affairs. Other potential penalties and drawbacks of hiring unlicensed contractors include the following:

• Project Issues and Delays: Unlicensed contractors typically lack the skills, experience, and knowledge to undertake projects safely and effectively. These contractors are also more likely to cut corners when performing their work, resulting in unsatisfactory service delivery.
• Financial and Legal Liabilities: Unlicensed contractors typically don't carry insurance or bonds, and hiring these contractors makes you liable for any incidents that may occur during your project.
• Code Violations: An unlicensed contractor cannot pull required permits for your project; doing construction and home improvement work without these permits results in fines and administrative penalties. These code violations also negatively impact your property's value.

Individuals who engage or attempt to engage in unlicensed contracting in Michigan are considered guilty of committing a misdemeanor offense, punishable by a fine of up to $25,000, imprisonment of up to one year, or both.

How Much Does a Contractor Charge in Michigan?

The cost of hiring specialty contractors in Michigan typically ranges from $55 - $110 per hour; the nature, scope, and complexity of your required services will determine the total cost of engaging these contractors.

The table below lists the typical hourly rates for commonly requested Michigan specialty contractors (and subcontractors). Notice that the actual pricing may vary depending on your location, the subcontractor's level of experience, and their local reputation.

Electricians

$65 - $110

Plumbers

$80 - $120

HVACR Technicians

$60 - $100

Carpenters

$55 - $90

Painters

$50 - $80

Roofers

$65 - $105

Flooring Contractors

$55 - $90

Masons

$60 - $100

Landscapers

$45 - $85

Architects

$70 - $200

Interior Designers

$70 - $185

Excavation Contractors

$100 - $200

Concrete Contractors

$60 - $95

Handymen

$50 - $70

Appliance Repair Technicians

$50 - $90

Exterminators

$60 - $100

Cleaning Services

$55 - $100

Movers

$50 - $150

Typical construction and home renovation projects usually require the participation of multiple specialty contractors. Managing all of these contractors on your own can be demanding and time-consuming. However, you can hire a general contractor to take on these duties and handle the entire project on your behalf for a percentage of its total cost, usually 10 – 20 percent. Actual prices are usually calculated using one of the following fee structures:

• Fixed Bid / Lump Sum: With this fee structure, the general contractor offers a fixed price for the project. This sum includes the cost of all required labor and supplies and a markup for the contractor's services. Fix bid/lump sum pricing is preferred for projects with clear scopes and timelines.
• Cost Plus / Time and Materials: With this fee structure, the general contractor provides a cost estimate for the materials and supplies required, plus an hourly rate for labor and subcontractors. Cost plus pricing is the preferred fee structure for projects without defined scopes or timelines.

The average price for construction and home improvement projects in Michigan typically ranges from $90 - $150 per square foot. Nonetheless, the actual cost of your project will be determined by several factors like the following:

• The project's nature and scope
• The cost of required materials
• Your location
• Site conditions and accessibility to the project site
• The experience and reputation of the contractors involved
• Contractor fees, labor fees, permit costs, and other related expenses

Tips for Hiring a Contractor in Michigan

Construction and home renovation projects typically involve a lot of money. Even relatively simple home repairs and maintenance can cost you hundreds of dollars. As such, making wise choices regarding the contractors you hire for these projects is critical. The first step you should take to ensure you hire the right contractor is determining the scope of work to be done and identifying the types of contractors needed. Subsequently, consider the tips provided below before hiring these contractors:

• Get at least two or three estimates for the project and compare them.
• Always verify your preferred contractors' license status.
• Request references and check them.
• Confirm your chosen contractors are insured and bonded.
• Get a written contract. Ensure that it includes the contractor's contact details, license number, an estimated project timeline, a cost breakdown, a payment schedule, and a requirement that the contractor must obtain all necessary permits for the project.
• Read the small print on any documents you are asked to sign before doing so. Look out for blank spaces that could be filled in later and arbitration clauses. While these clauses (which mandate alternative dispute resolution as a means of settling consumer-contractor issues) are common, they sometimes affect your consumer rights and remedies.
• Do not pay the full cost of your project upfront. Advance payments should also be limited to one-third of the project's total cost, and subsequent payments should not get ahead of the work.
• Avoid cash payments and collect a receipt or invoice for any payments you make.
• Ensure that the project has been completed per the terms of your contract before making the final payment. Also, confirm that all subcontractors and suppliers have been paid and any liens placed on your property have been waived.
• Keep good records of all project-related paperwork.

Is Your Contractor Insured and Bonded as Required by Michigan Statutes?

Contractors in Michigan must carry workers' compensation insurance for their employees. However, ensuring that your intended contractors also have liability insurance and bonds is essential; these protect you from out-of-pocket expenses if incidents involving third-party injuries, property damage, and contractor errors occur during your project. Notice that, while insurance and bonds work together, they offer distinct forms of financial protection. Insurance typically covers both the contractor and the project owner by ensuring that neither of them has to pay out-of-pocket for work-related incidents like injuries and property damage. On the other hand, bonds cover losses caused by the contractor's failure to deliver promised services.

Therefore, before committing to any contractor in Michigan, request copies of their insurance and bond certificates and validate these documents by contacting the issuing organizations. You should also confirm that the contractor's coverage limits will be adequate for the scope of your project.

Questions concerning state-mandated workers' compensation insurance coverage and other insurance-related issues can be directed to the Michigan Workers' Disability Compensation Agency at (517) 284-8922.

Top Home Improvement Scams in Michigan

The Michigan Department of Attorney General handles more than 10,000 consumer complaints annually on matters involving scams, reneged contracts, subpar service delivery, and other similar issues. This should be no surprise, considering that fraudulent contractors across the state often set out to rip off unsuspecting homeowners by accepting payment for jobs they do not intend to carry out properly. Some warning signs that you may be dealing with a fraudulent contractor include the following:

• Unsolicited offers of home repair and improvement services
• High-pressure sales tactics
• Insistence on cash payment, full payment upfront, or large advance payments
• Discounts and repair offers that are dependent on the contractor starting work immediately
• Hesitance to provide references, proof of licensing, or written contracts

Unfortunately, there is no way to completely eliminate the risk of running into fraudulent contractors looking to trick you out of your money when planning your home improvement project. However, you can significantly reduce your chances of falling victim to these scammers by taking the following precautions:

• Never let unsolicited contractors into your home.
• Prioritize local contractors.
• Always confirm your prospective contractors' license status. Ensure they are also adequately insured and bonded.
• Insist on written contracts. Ensure you review these contracts thoroughly before signing. Never sign documents with blank spaces that could be filled in later.
• Do not pay more than one-third of your project's total cost upfront.
• Avoid cash payments.
• Be wary of contractors who suggest projects clearly above your budget and offer to connect you with a lender to help pay for these projects.